CAMBRIDGE MULTIFAMILY PILOT DESIGN: STRATEGIES FOR ENGAGEMENT, OUTREACH, AND FINANCING Ryan Cook Caroline Howe Adi Nochur Sophie Pan Dara Yaskil March 22, 2013

Program Parameters: Engagement and Outreach How can we design a pilot program that… Facilitates conversation about energy efficiency? Takes advantage of local organizations, social networks, and institutional resources? Leverages energy data as a resource in engaging the community?

Program Parameters: Project Financing How can we design a pilot program that… Incentivizes residents and landlords to encourage each other to adopt energy efficiency (overcomes split incentive barrier)? Reduces or removes the up-front cost paid by building owners and residents? Leverages outside funding streams to bring a program to scale?

Organizing Strategies: Amplifying Local Success Stories Problem Residents and owners are skeptical about the return on investment of efficiency work Residents don't have incentives to share their stories or encourage participation of neighbors Potential Solutions Advertise and amplify local success stories Work with HEET and NStar to identify previous participants willing to act as success stories Work with realtors and listing services to track and advertise homes that have had retrofits Organize tours of efficient homes or retrofit visits Incentivize partners to recruit neighbors (potential for participation-based incentives similar to Solarize)

Organizing Strategies: Empowering Energy Champions Problem The primary beneficiary of energy efficiency (residents) often have difficulty gaining the support of landlords and condo owners who must approve of any home improvement Potential Solutions Target renters and condo owners to conduct their own audits, and give them customized resources to bring to their landlords/condo boards Pro-forma resulting from audit Comparison to energy costs in rest of neighborhood

Organizing Strategies: Using Local Strengths and Institutions Problem Cambridge has powerful institutional actors that have been slow to act on efficiency Potential Solutions Work with..  Faith groups, churches and CDCs to distribute information  MIT and Harvard housing offices to track and advertise homes with low energy costs as a service to students  Landlords who have completed retrofits/interested in efficiency to promote savings and engage other landlords  Local realtors to promote energy efficient homes  Local banks to develop and realize sensible financing strategies  Energy efficiency companies to create a system that works with landlords throughout the entire retrofit process

Organizing Strategies: Leveraging Energy Data Problem Access to energy information is poor, problematic for current and prospective residents Potential Solutions Discuss use of potential energy data products with stakeholders  Map, home energy reports, publicizing success stories, raw data warehouse Chart strategies for data collection mechanisms  Potential avenues for utility disclosure  Voluntary disclosure through community-based social marketing

Financing Strategies: Employing Innovative Financing Mechanisms Problem Even with Mass Save incentives retrofits can entail a substantial up-front cost Split incentives between landlords and tenants prevents energy efficiency uptake Potential Solutions Employ new financing mechanisms to address barriers: On-Bill Financing attached to meter PACE Financing Community-Based Energy Revolving Loan Funds Green Leases

Financing Strategies: Leveraging Additional Funding Streams Problem Utility ratepayer funds alone are not always sufficient to bring energy efficiency programs to scale Potential Solutions Partner with financial institutions and investigate alternate sources of capital Create fund structures that pool ratepayer funds with other revenue streams and ensure recapitalization Consider designating a third-party fund manager

Questions for NStar and CSG Would it be possible to conduct outreach to previous program participants through NStar and CSG, asking if they would like to be used as success stories in a local pilot? Would NStar be willing to share aggregate energy data for multifamily buildings in Cambridge? Could new financing mechanisms be part of a pilot program in Cambridge? What are the barriers to implementing these mechanisms and how might they be addressed? How can we effectively use energy data to make the case for energy efficiency financing?